This report lists the differences between Chargeback Reversals (code 8’s) and Credit Memos (code 2’s). The 8’s & 2’s occur when the vendor did not issue credit equal to the amount of chargeback. This report lists the most recent recs first, and as a result, the recs for which you have not processed a credit memo will appear first.
You must review this report monthly to protect the margin and shrink in your store because:
- Cost differences listed in this report may impact margin.
- Retail differences listed in this report may impact shrink.
Refer to the chart below for guidelines on what can cause a cost difference and a retail difference.
|Cost differences may be due to:||Retail differences may be due to:|
Vendor owing additional credits for the return/chargeback.
The merchandise/text books may have been returned by the vendor (return of return).
Vendor may have charged return penalties or restocking fees.
The chargeback may have been prepared in error.
An error that was made in chargeback preparation (e.g. not all the books listed in the chargebacks were shipped).
Books that were received back by the store (return of return).
If the reason for the difference is not listed above, adjust the retail inventory by recording a markdown or by recording a retail correction. Record markdowns in the Markup/Markdown program. To record a retail correction, complete a Retail Correction Worksheet.